Question

What distinguishes Traditional With Profits Endowments?

a.

They do not pay any annual bonuses.

b.

The sum assured is guaranteed to decrease.

c.

Annual bonuses are added based on investment performance.

d.

Terminal bonuses are guaranteed at maturity.

Posted under IC 89 Management Accounting

Answer: (c).Annual bonuses are added based on investment performance. Explanation:Under Traditional With Profits Endowments, the sum assured guaranteed to be paid is increased based on investment performance through the addition of annual bonuses.

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Q. What distinguishes Traditional With Profits Endowments?
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